The European Commission is opening a new chapter in the implementation of the CBAM (Carbon Border Adjustment Mechanism) with the launch, on 1 July 2025, of a public consultation on a potential extension of the mechanism to downstream products.
What’s the purpose of this consultation?
The CBAM is designed to combat carbon leakage by applying a carbon price to imports of certain high-emission goods (like steel, cement, aluminium), mirroring the cost borne by EU producers under the Emissions Trading System.
The new proposal?
Extending the regulation to processed or downstream goods, such as screws, automotive parts, or electrical equipment — products made using materials already covered by CBAM.
Objective: Strengthening the impact of the CBAM
By including these more complex products, the aim is twofold:
- Prevent circumvention of the CBAM through the import of carbon-intensive processed goods.
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Protect European industry against international competitors who are not subject to equivalent climate policies.
A consultation open to all
The Commission wants to hear from all stakeholders: businesses, industry groups, NGOs, researchers, public authorities, and citizens. This is your chance to voice your opinion on the economic, technical and environmental implications of such an extension.
🗓️ Deadline to respond: 26 August 2025
📩 Link to official consultation page:
